Superannuation is money employers must pay eligible workers to provide for their retirement. The Super guarantee (SG) is the minimum amount employers must pay to avoid the super guarantee charge. SG is now 10% of an employee’s ordinary time earnings.
Labour hire providers must comply with superannuation laws to obtain and keep their labour hire licence.
Hosts (including providers who subcontract) must make sure they are paying their providers enough to meet their legal obligations including paying award wages, superannuation, WorkCover and tax.
Hosts (including providers who subcontract) should note that failing to pay their providers enough to meet their legal obligations is a contravention of section 550 of the Fair Work Act 2009.
Working out if you have to pay super
Generally, if you pay an employee $450 or more (before tax) in salary or wages in a calendar month, you must also pay super guarantee for them. Salary or wages includes any overtime.
Generally, all employees are eligible for super. It doesn't matter if the employee is:
- full-time, part-time or casual
- receiving a super pension or annuity while working (this includes employees on transition to retirement)
- a temporary resident, such as a backpacker
- a company director
- a family member working in your business.
Temporary residents and international workers
Your worker is eligible for super even if they are a temporary resident, such as a backpacker or a working holiday maker.
Visit the Australian Tax Office website to learn more about super contributions, including:
- how much super to pay
- how to pay super
- super payment due dates
- what to do if you missed or paid super late
- super obligations checklist for employers.
From 1 November 2021, where new employees do not choose a super fund, employers will have to check with the ATO if their employee has an existing super account, known as a 'stapled super fund', to pay the employee's super guarantee into.
Learn more about the Super reforms – Your Future, Your Super.